FINANCIAL ACCOUNTING
(DIPLOMATURA EN CIENCIAS EMPRESARIALES, 2 CURSO, GRUPO 5)
2008-2009
EXERCISES LESSON 3
BALANCE SHEET
132,000
40,000
10,000
30,000
12,000
3,000
40,000
150,000
84,150
500,000
120,000
5,500
6,000
400
308,750
3,000
1,500
140,000
20,000
3,000
150,000
6,000
5,000
REQUIRED: Prepare the Balance Sheet according to the normal model of the new PGC.
EXERCISE 2 (LESSON 3)
The following list of accounts for Company C.V. Ltd. is available at the end of 200X.
Long-term holdings in equity (1)
2,500
Shares in the entity held by the entity
1,000
Salary payable
20
Adjustments for changes in value of financial instruments available for sale
50
Accumulated depreciation of intangible assets
950
Accumulated depreciation of tangible fixed assets (2)
1,000
Customers advances
100
Cash
1,335
Capital stock
21,000
Accounts receivable
200
Constructions (3)
5,000
Constructions in progress
300
Short-term credit from the sale of tangible fixed assets
500
Impairment of inventories of goods for sale
100
Short-term debt with credit institutions
2,000
2
2,000
200
4,000
2,000
1,000
500
270
220
50
10
50
5,200
1,925
4,000
50
500
300
1,600
5,000
1,500
(1) These are shares that have been classified by the company as available for sale.
(2) The breakdown of the accumulated depreciation is the following:
Constructions:
500
Furniture:
250
Computers:
100
Vehicles:
150
(3) A warehouse with a value of 2,000 (accumulated depreciation: 200) is not being used in the
operations but being rented to another company.
REQUIRED: Prepare the Balance Sheet according to the normal model of the new PGC.
SOLUTION
ASSETS
A) NON-CURRENT ASSETS
I. Intangible assets.
1. Research and development.
2. Administrative concesions.
3. Intelectual property, trademarks and others.
4. Goodwill.
5. Computer software.
6. Other intangible assets.
II. Tangible fixed assets.
1. Land and structures.
2. Plant and machinery, tools, furniture and other
tangible assets.
3. Tangible fixed assets in progress and advances.
III. Investment property.
1. Land.
2. Structures.
IV. Long-term investments in subsidiaries and
associated companies.
1. Shares and long-term holdings in equity of
subsidiaries and associated companies.
200X
3.050
2.700
10.700
300
1.800
LIABILITIES
A) EQUITY
A-1) Shareholders' equity.
I. Capital.
1. Registered capital.
2. (Uncalled subscribed capital).
II. Additional paid-in capital.
III. Reserves.
1. Legal and statutory.
2. Other reserves.
IV. (Shares in the entity held by the entity).
200X
21.000
- 5.000
1.600
- 1.000
300
200
1.925
2.500
900
4. Finished goods.
5. Auxiliary products, consumables and
replacements.
6. Advances to suppliers.
III. Trade accounts receivables and other
receivables.
1. Trade accounts receivables for sale and services.
2. Accounts receivables from subsidiaries and
associated companies.
3. Sundry accounts receivables.
4. Employee receivables.
5. Assets for current tax.
6. Other receivables from public authorities.
7. Called subscribed capital receivable.
IV. Short-term investments in subsidiaries and
associated companies.
1. Shares and short-term holdings in equity of
subsidiaries and associated companies.
2. Short-term loans to subsidiaries and associated
companies.
3. Other short-term investments.
V. Short-term financial investments.
1. Shares and short-term holdings in equity.
2. Short-term credits to companies.
3. Short-term derivative financial instruments.
4. Other short-term financial investments.
VI. Accrual accounts.
VII. Cash and cash equivalents.
1. Cash.
2. Cash equivalents.
TOTAL ASSETS
200
50
550
500
270
1.355
24.875
50
1.500
500
2.000
2.010
50
20
220
100
24.875
EXERCISE 3 (LESSON 3)
The following list of accounts for Company Y Ltd. is available at the end of 200X.
ACCOUNT
AMOUNT
170,000
80,000
95,000
40,000
80,000
30,000
5,000
45,000
300,000
2,000
130,000
90,000
20,000
18,000
12,000
25,000
200,000
12,000
3,000
15,000
45,000
1,000
38,000
100,000
60,000
40,000
120,000
70,000
75,000
215,000
10,000
18,000
29,000
120,000
35,000
6,000
36,000
12,000
150,000
55,000
75,000
180,000
270,000
(3) Vehicles:
(4) Investments in constructions:
30,000
20,000
These are shares that have been classified by the company as available for sale. There are two groups
of shares:
Holdings in company A:
Book value (1/1/2007):
42,000
Market value (31/12/200X):
50,000
Holdings in company B:
Book value (1/1/2007):
173,000
Market value (31/12/200X):
150,000
SOLUTION
ASSETS
A) NON-CURRENT ASSETS
I. Intangible assets.
1. Development.
2. Administrative concesions.
3. Intelectual property, trademarks and others.
4. Goodwill.
5. Computer software.
200X
7.600
410.000
261.410
200X
370.000
20.000
III. Reserves.
1. Legal and statutory.
2. Other reserves.
IV. (Shares and holding in equity of the
company/Shares in the entity held by the entity).
50.000
103.881
171.864
2. Loans to companies.
3. Debt instruments.
4. Derivative financial instruments.
5. Other financial assets.
VI. Deferred tax assets.
B) CURRENT ASSETS
I. Non-current assets held for sale.
II. Inventories.
1. Commercial (goods for sale).
2. Raw materials and other supplies.
LIABILITIES
A) EQUITY
A-1) Shareholders' equity.
I. Capital.
1. Registered capital.
2. (Uncalled subscribed capital).
II. Additional paid-in capital (share premium).
30.000
2.100
3. Work-in process.
2.700
4. Finished goods.
5. Auxiliary products, consumables and
replacements.
6. Advances to suppliers.
III. Trade accounts receivables and other
receivables.
1. Trade accounts receivables for sale and
services.
2. Accounts receivables from subsidiaries and
associated companies.
3. Sundry accounts receivables.
4. Employee receivables.
5. Assets for current tax.
6. Other receivables from public authorities.
7. Called subscribed capital receivable.
7.500
2.550
5.600
B) NON-CURRENT LIABILITIES
I. Long-term provisions.
1. Provisions for long-term employee benefits.
2. Environmental actions.
3. Provisions for reestructuring.
4. Other provisions.
II. Long-term debt.
1. Debentures and other negotiable securities.
2. Long-term debt payable to credit institutions.
3. Long-term debt from leasing contracts.
4. Derivative financial instruments.
3. Other financial liabilities.
III. Long-term debt payable to subsidiaries and
associated companies.
IV. Deferred tax liability.
95.000
48.920
10.000
76.890
1. Holdings in equity.
2. Loans to companies.
3. Debt instruments.
4. Derivative financial instruments.
5. Other financial assets.
V. Short-term financial investments.
1. Holdings in equity.
2. Loans to companies.
3. Debt instruments.
4. Derivative financial instruments.
5. Other financial assets.
VI. Accrual accounts.
VII. Cash and cash equivalents.
1. Cash.
2. Cash equivalents.
TOTAL ASSETS
11.420
7.800
800
49.855
10.400
3.150
1.800
146.060
998.130
TOTAL LIABILITIES
998.130
70,000
80,000
90,000
10,000
10,000
5,000
500,000
40,000
4,000
70,000
5,000
200,000
2,000
35,000
25,000
3,000
15,000
6,000
2,000
30,000
80,000
55,000
2,000
8,000
80,000
30,000
85,000
10,000
75,000
25,000
10,000
120,000
200,000
20,000
7,000
18,000
9,000
5,000
20,000
5,000
6,000
6,000
2,000
20,000
30,000
60,000
30,000
(4) The breakdown of the accumulated depreciation of tangible fixed assets (30,000) is the following:
Furniture: 10,000
Computers: none.
Vehicles: 10,000
Machinery: 10,000
(5) The breakdown of the accumulated depreciation of intangible fixed assets (80,000) is the following:
Development: 58,000
Computer software: 2,000
Intellectual property: 20,000
(3) These are shares that were bought at the beginning of the year and have been classified by the company
as available for sale. Their value at the beginning and at the end of the year has been the following:
Book value (1/1/2008):
200,000
Market value (31/12/2008):
175,000
These holdings have not yet been valued at fair value.
REQUIRED:
a) Register the valuation at fair value of the long term holdings in equity.
b) Prepare the Balance Sheet according to the format established by the P.G.C. 2007.
SOLUTION
25,000
to
(250) Long-term
holdings in equity
instruments
25,000
ASSETS
A) NON-CURRENT ASSETS
I. Intangible assets.
1. Development.
2. Administrative concesions.
3. Intelectual property, trademarks and others.
4. Goodwill.
5. Computer software.
6. Other intagible assets.
II. Tangible fixed assets.
1. Land and structures.
2. Plant and machinery, tools, furniture and other
tangible assets.
3. Tangible fixed assets in progress and advances.
III. Investment property.
1. Land.
2. Structures.
IV. Long-term investments in subsidiaries and
associated companies.
1. Holdings in equity.
2. Loans to companies.
3. Debt instruments.
4. Derivative financial instruments.
5. Other financial assets.
V. Long-term financial investments.
1. Holdings in equity.
2. Loans to companies.
3. Debt instruments.
4. Derivative financial instruments.
5. Other financial assets.
VI. Deferred tax assets.
B) CURRENT ASSETS
I. Non-current assets held for sale.
II. Inventories.
1. Commercial (goods for sale).
2. Raw materials and other supplies.
3. Work-in process.
4. Finished goods.
5. Auxiliary products, consumables and replacements.
6. Advances to suppliers.
III. Trade accounts receivables and other
receivables.
1. Trade accounts receivables for sale and services.
2. Accounts receivables from subsidiaries and
associated companies.
3. Sundry accounts receivables.
4. Employee receivables.
5. Assets for current tax.
6. Other receivables from public authorities.
LIABILITIES
A) EQUITY
A-1) Shareholders' equity.
142.000 I. Capital.
1. Registered capital.
35.000
2. (Uncalled subscribed capital).
II. Additional paid-in capital (share
premium).
3.000 III. Reserves.
1. Legal and statutory.
2. Other reserves.
IV. Shares in the entity held by the entity.
200X
200X
500.000
- 60.000
10.000
85.000
30.000
65.000
1. Non-distributed income.
2. (Prior years' negative income).
VI. Other owners' contributions.
VII. Income for the year.
- 5.000
30.000
- 25.000
20.000
120.000
C) CURRENT LIABILITIES
90.000
8.000
10
1. Holdings in equity.
2. Loans to companies.
3. Debt instruments.
4. Derivative financial instruments.
5. Other financial assets.
V. Short-term financial investments.
1. Holdings in equity.
2. Loans to companies.
3. Debt instruments.
4. Derivative financial instruments.
5. Other financial assets.
VI. Accrual accounts.
VII. Cash and cash equivalents.
1. Cash.
2. Cash equivalents.
TOTAL ASSETS
20.000
6.000
2.000
150.000
7.000
27.000
10.000
5.000
35.000
40.000
4.000
884.000 TOTAL LIABILITIES
884.000
11